PIMCO has launched the PIMCO Credit Absolute Return Fund, a go-anywhere type of fixed income fund that will employ some hedging strategies, including shorting and credit default swap derivatives, and be managed by Mark Kiesel.

As a go-anywhere fund, the fund will not be constrained by a traditional credit benchmark index. Instead, it will benchmark against the three-month London Interbank Offered Rate (LIBOR). As well, it will take a macroeconomic view to select what Kiesel calls “top picks.”

“Some clients may view the strategy as a ‘light’ version of a hedge fund strategy, given its objective of delivering positive returns across various market environments and its unconstrained approach to investing in global credit markets,” Kiesel said.

PIMCO already runs a handful of hedge fund-type products, including the $17 billion PIMCO Unconstrained Bond Fund.